Landlord Properly Deemed Renewal Lease

Tenants complained of a rent overcharge. The DRA ruled against tenants. The apartment's rent history showed that landlord deemed a two-year renewal lease for a prior tenant, then did 1/40th apartment improvements after prior tenant moved out. Tenants' first rent was $2,200 per month. So their rent was deregulated and not subject to review. Tenants appealed. They said that no lease should have been deemed because there was no proof that anyone chose to renew the lease; that landlord had shown no proof that prior tenant had paid the higher rent under the renewal; and that the deeming of a two-year lease was in error. The DHCR ruled against tenants. Rent Stabilization Code Section 2523.5(c)(2) states that landlord can deem a lease to be renewed on the same terms as the prior lease in effect if tenant doesn't respond to a renewal lease offer. The prior tenant's prior lease was a two-year lease, so landlord properly deemed a two-year renewal lease.

Wang/Schreiner: DHCR Adm. Rev. Dckt. No. TH410041RT (1/27/06) [3-pg. doc.]